LA Jet Fuel Basis Climbs 15cts to 60cts on 5/5


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- The basis for prompt Los Angeles jet fuel strengthened 
Tuesday (5/5), rising by 15cts to a 60cts premium above June NYMEX ULSD 
futures, rebounding from Monday's 45cts premium as the market regained some 
ground after last week's sharp pullback.
The increase follows a steady decline that dragged the basis down from a record 
$1.10 gallon premium in late April, with values falling to 60cts on Friday 
(5/1) and then further to 45cts on Monday (5/4) before Tuesday's recovery.
Los Angeles diesel was last seen near a 13ct premium to NYMEX ULSD futures, 
holding below prior highs as middle distillate strength remains mixed.
Traders continue to point to constrained West Coast refining capacity as the 
underlying driver, with the shutdown of Phillips 66's 139,000 bpd Los Angeles 
refinery and the ongoing idling of Valero's 145,000 bpd Benicia refinery 
tightening supply across the region.




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